Download - The Evolution of Mexican Financial Markets
October 31, 2013
The Evolution of Mexican Financial Markets
Prepared by:
Joe Kogan, Head of Emerging Markets Strategy, Scotiabank Global Banking and Markets
Araceli Espinosa, Fixed Income Strategy, Scotiabank Global Banking and Markets Mexico
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Agenda
1. Introduction
2. Fixed Income
3. FX
4. Equity
5. MexDer
6. Scotiabank
1. Introduction
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CME Group / MexDer Partnership
April 4, 2011South-to-North Order Routing successfully launched
August 1, 2011North-to-South Order Routing to launch
Benefits• No withholding taxes when trading in MexDer
• No local presence required in Mexico
• Remote Membership
• Omnibus Accounts: Rule 30.7 (CFTC) segregation
o One for Proprietary Trading
o One for Customer Trading
• With the CME Group – MexDer order routing agreement MexDer products will be available in more than 100,000 CME Globex ® screens.
• CFTF Approved Products
• Remote Membership
• Co-Location
• DMA
• Collaterals accepted in the U.S.
• Give Ups
o FIA standard agreement
In March 2010, CME Group and Bolsa Mexicana de Valores announced a new strategicpartnership.
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CME Group / MexDer Global Partnership Page
For more information on CME Group’s partnership with MexDer, plus Order Routing Agreementsand upcoming events, visit the MexDer Partnership Page at www.cmegroup.com/mexder. Available resources include:
1. List of MexDer Clearing Members
2. North-to-South FAQ & Onboarding Reference Guide
3. Client Impact Assessment Document
4. MexDer / CME Group Partnership Brochure
5. Presentation on Mexican Bond Markets and IPC Futures
2. Fixed Income
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Mexican Sovereign Bonds: Outstanding Amount and Holders
Pension and Mutual Funds represent a solid, stable and a long term investmentin the local markets, holding about 33% of the total amount outstanding.
Mexican Sovereign Bonds: Total AmountOutstanding of Mbonos and Cetes
1999-2013 (October)
Mexican Sovereign Bonds: Holdings by Local Investors (Total Outstanding Bonds)
2007-2013 (October)
Source: BanxicoSource: Banxico
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Mexican Sovereign Bonds: Foreign Investors
Foreign holders of Mbonos are mainly Central Banks, Insurance Companies, and SovereignFunds. As a consequence we expect lower foreign outflows during high volatility periods.
Foreign Investment in Mexican Cetes and Mbonos
Cetes: Foreign Investment 2009 - 2013 Mbonds: Foreign Investment 2009 - 2013
Source: Banxico
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Benchmark Rate and Macroeconomics
Mexico Budget Balance (%GDP) Mexico CPI 1979-2011 (Annual Rate)
M Bono 10 Yr
Investment
Grade
for Mexico
Banxico
Tightening Mexican Presidential
Elections (Calderón)
Lehman Bankruptcy /Comerci derivatives
default
WGTB Index: Inclusion Mbonos
Subprime Mortgages contagion
FED Taper news
Mexican Presidential
Elections (Peña Nieto)
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MEXICO – USA: Benchmarks Rates /Spreads
Spreads between Mexican and US interest rates have been tightening due to solid fundamentals in Mexico.
USA – MEXICO: FED FUNDS TARGET RATE VS BANXICO OFFICIAL OVERNIGHT RATE
2005-2013
USA – MEXICO BOND YIELD SPREAD 10 YR2001-2013 (October)*
* US Generic Govt 10 Yr Yield vs GMXN10YR Index. Source:BloombergSource: Bloomberg
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MEXICO – Government Securities Auction Calendar Q2/13
The Government schedules auctions 1 month in advance of each quarter.
Primary Auction Issue Program (average data)
Source: SHCP
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Daily Market Volumes
Mbonos Market
• Bid ask spread is 1-3 bps, depends on volatily in Market• Typical sizes are MNX$ 10-100 mm. Larger sizes would entail much larger bid-ask spread.• Most liquid 10Y: June 20 and Dec. 23• Most liquid 20Y: May 29• Most liquid overall: Dec 24• Functioning repo market for domestic players• No on-the-run premium as there is in US Treasuries• 7 Market Makers approved by the Financial Authorities. They must comply with liquidity and volume standards on a monthly basis• Qtr. Issuance schedule, sometimes new series, sometimes add to existing series.• Security lending is available; Short selling is allowed to/through the Market Makers and/or Mexder• Central counterparty “Indeval” clears, deposits and custodies all securities.• Securities settlement within 96 hours• Trade between 8:00 am and 3:00pm EST• 4.9% withholding tax if double taxation treaty; 10% otherwise and 30% for tax havens• No taxes in FX, Equity, and derivatives
Up to90 days
From90 days to
1 Yr
From 1 Yr to 3 Yr
From 3 Yr to5Yr
From 5Yr to 10 Yr
From 10 Yr to20 Yr
More than20 Yr
Cetes 759 1,045 0 0 0 0 0
Mbonos 8 22 67 72 400 102 100
Udibonos 0 0 26 9 71 23 34
Sources: Banxico as of May 2013.Average Daily Volume US Million
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Mexico - USA: Nominal and Swap Curves
The Mexican term structure offers many opportunities for trading, with tenors ranging from 1 day to30 years.
* Source: Bloomberg as of Oct. 29, 2013
USA – MEXICO Bond Curves* USA Libor Curve– MEXICO TIIE Curves
0
1
2
3
4
5
6
7
8
9
3months
6months
9months
1 yr 2 yr 3 yr 4 yr 5 yr 8 yr 10 yr 15 yr 20 yr 30 yr
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Mexder: Fixed Income Contracts
Worth mentioning is the fact that MBonos Futures are very liquid and trade at tight spreads.
MEXDER and its clearing firm ASIGNA already have a 2 and 10 years swap that can be “delivered/received” once the future expires directly using ASIGNA as a counterparty.
Ticker Symbol Bond Futures M3/M5/M10/
M20/M30
28-Day TIIE Futures Contracts
(TE28)
91-Day Cetes Futures Contracts
(CE91)
Interest Rate Swaps 2-Year / 10-Year
(SW02 /10 + Month and Maturity Year)
UDI MXN Fixed/Float
28-Day TIIE (Swap)
Quotation Price Interest Rate Interest Rate Interest Rate
UDI x 100
Nominal Fixed Interest Rate expressed in pp
Size 1,000 bonds (MXN$100,000) MXN 100,000 10,000 CETES
(MXN 100,000) MXN 1 Million 50,000 UDIS
MXN 1 Million
Tick MXN 0.025 / USD* 0.00208 1 bp (0.01) 1 bp (0.01) 0.5 bp
$0.001 MXN x Udi
1 bp (0.01)
Notional Value MXN 100,000 MXN 100,000 MXN 100,000 MXN 1 Million 50,000 UDIS
MXN$1 million
Maturity Months Quarterly, up to 3 years
Monthly up to 10 years
Monthly up to 12 months. Quarterly, up to 24 quarters
Monthly and Quarterly
Monthly and Quarterly
28 days rolls from the Effective Date
Settlement Physical Delivery Differentials Differentials Physical Delivery
and Differentials Cash Settlement
Exchange of cash flow
Trading Hours 8:30 – 15:00 EST 8:30 – 15:00 EST 8:30 – 15:00 EST 8:30 – 15:00 EST 8:30 –
15:00 EST 8:30 – 15:00 EST
Bloomberg (MMDD) DWA (CMDTY) CT
DOA (CMDTY) CT GMA (CMDTY) CT SWTA (CMDTY)
CT
IUA (CMDTY)CT
MXN 3X1 (CMDTY)CT…
R.30 – Reuters MXN/FUTEX1 0#B10: 0#T11: 0#CTE: 0#SW2 and 0#SW10 0#UDI: na
3. Foreign Exchange
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Currency Distribution of Global Foreign Exchange Market Turnover
Latin American FX Markets Turnover
Global FX Market Turnover
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Mexican peso Brazilian real Chilean peso Colombian peso Argentine peso Peruvian nuevo sol
1. Mexico is positioned as the 13th most traded currency in the world
2. It is the third most traded currency of the emerging economies, just below the Hong Kong dollar and the Korean won
3. That makes the MXN the most traded currency in Latin America
Emerging Markets
0
10
20
30
40
50
60
70
80
90
US Dollar Euro JapaneseYen
Poundsterling
Australiandollar
Swissfranc
Canadiandollar
HongKongdollar
Swedishkrona
NewZelanddollar
Koreanwon
Singaporedollar
Norwegiankrone
Mexicanpeso
Othercurrencies
Note:
The graphics show the percentage shares of average turnover in April of 2010. The sum of the percentage shares of all the currencies add up to a total of 200%, instead of 100% because two currencies are involved in each transaction.
Sources: Triennial Central Bank Survey, Bank for International Settlements
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Total Volume of the MXN Market
The greatest amounts traded in the MXN market come from foreign investors, who account for95% of the volume in swaps and 76% in cash and forward contracts.
Source: Central Bank of Mexico, millions of dollars, daily basis.
17
Total Volume of the MXN Market
If the volume traded by foreign investors is classified by terms, then it can be seen that most of these positions are long pesos in the intraday and 24 hour term and short pesos in the 48 hoursand greater terms, suggesting that foreigners are taking advantage of the high interest rates in theshort term. This can also be seen in the increasing position of the Cetes owned by foreigners.
Source: Central Bank of Mexico, millions of dollars, daily basis.
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Central Bank’s Monetary Policy
• The Central Bank issues put options that can be exercised at the last day’s FIX, if this is not greater than the average of the last 20 days’ FIX rate.
• The Central Bank auctions US$ 600 million by the end of each month, giving investors the opportunity to exercise the options throughout the next month.
• In this way, the Central Bank follows a less aggressive monetary policy than other countries in Latin America. Its policies bear some resemblance to those of Colombia.
International Reserves as a Percentage of the GDP 2013
How the Central Bank of Mexico intervenes in the FX market:
International Reserves USD 2013
Peru 67,108
Brazil 367,002
Chile 47,483
Mexico 174,262
Colombia 37,466
International Reserves / GDP %
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MXN: Operating Factors
• No Withholding Tax
• Settlement within 48hours most common; also quoted are intra-day and 24 hour settlement
• There is a very liquid futures market: OTC forward, CME Mexican Peso contract and Mexder USD contract
• Many brokers and matching systems available to trade Mexican Peso.
• Many foreign and local participants
• 24 hours trading
• Settlement should done by SWIFT
• Full delivery
Factors that influence the MXN performance:• High liquidity in the international economy
• Oil prices
• Economic fundamentals
• No direct intervention of the Central Bank in the FX Market
• Change in investors’ risk perception, which contributes to the daily volatility
MXN: Operating Factors MXN: Drivers
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Mexder: Currency Derivatives
Large Volume and High Open Interest are found in MXN/USD Futures.
MXN/USDFutures
MXN/EUROFutures
MXN/USDOptions
Ticker Symbol DA Euro DA
Quotation / Style Price Price European
Size $10,000 USD $10,000 EUROS $10,000 USD
Tick $0.0001 MXN $0.0001 MXN $0.001 MXN
Maturity Months Monthly, up to 3 years Monthly, up to 1 year Quarterly, up to 1 year
Settlement Physical delivery Cash Settlement Physical delivery
Trading Hours 8:30 – 15:00 hrs. EST 8:30 – 15:00 hrs. EST 8:30 – 15:00 hrs. EST
Bloomberg (MMDD) DSA (CRNCY) CT BEA (CRCNY) CT MXX (CRCNY) OMON
R.30 – ReutersMXN/FUTEX1 0#MXP: 0 # EURO: 0 # DA:XD
4. Equity
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Returns on Emerging Market Indices
• The IPC is the benchmark equity index of the Mexican Stock Exchange (Mexbol): a capitalization-weighted index composed of the country’s 35 most liquid stocks
• Total market capitalization of the index was US$410 billion as of July 19, 2011• Index members trade on the Mexbol between 9:30am and 4:00pm EST• The index has posted a +17% CAGR over the prior 16 year period; the return on the MSCI
index for Mexico was 12.6%.
International Reserves as a Percentage of the GDPMSCI EM vs MSCI Mexico - YOY ReturnsTicker MSCI country indices16 YR CAGR
Mexico 12.6%
Russia 18.1%
India 12.4%
Brazil 11.9%
China 1.2%Sources: Bloomberg
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IPC: Industries
• Members represent 17 different industries• The largest five index members represent 56% of the index• The main industry groups by market capitalization are Telecoms (28%), Retail (19%) and
Mining (14%)
Engineering & Construction
Telecommunications
Banks
Beverages
Retail
Mining
Real Estate Pharmaceuticals
Food
Building Materials
Chemicals
Diversified Financial Services
Forest Products & Paper
Holding Companies-Divers
Machinery-Diversified
Home Builders
Media
Sources: Bloomberg
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IPC: Traded Volume
• The top three stocks trade 48% of the total volume (AMX, GMEXICO and WALMEX) in the IPyC. The top ten stocks represent 76% of the index volume.
• In the LTM the index recorded an average daily trading volume of US$417 Million
Source: Scotiabank with Mexican Stock Market data as of Oct. 2013
2010: FIX 4.2 Aug.11: v4.4 protocol
Daily Trading Amount (US$M)
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Size of the Equity Local Market
• There are more than thirty brokerage houses in the country, including small and large firms. Fifteen of them (Scotiabank included) account for ~80% of the traded volume.
• The International Quoting System (SIC in Spanish) trades more than 300 ETF’s and more than 280 foreign stocks.
• Among the holders of Mexican equities are foreign institutional investors such as US big pension funds, mutual funds, etc.
• The Naftrac, a local ETF which mirrors the performance of the IPC, is the most traded stock with a YTD ADTV of US$180 million.
*Source: Scotiabank with Mexican Stock Exchange data as of October 29, 2013
Most traded stocks in Mexican Equity Market: Accumulated Amount 2013 YTD* US$M
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Pension Funds: Equity Holdings
Afores (Mexican pension funds) managed MXN1.6 trillion in September 2013As of Sep. 2013, 25% of assets under management were invested in equities vs. 11.1% in November 2008.
Source: Scotiabank with Consar data
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Mexican ADR
Sources: Bloomberg
Ticker Short Name Shares per ADR
AMX US AMÉRICA MÓVIL 20
TMX TELMEX 20
CX US CEMEX 10
TV US GRUPO TELEVISA 5
FMX US FEMSA 10
ICA US EMPRESAS ICA 4
HXM US HOMEX 6
PAC US GAP 10
ASR US ASUR 10
OMAB US OMA 8
KOF US COCA COLA 10
SIM US GRUPO SIMEC 3
MIXT US MAXCOM 7
VITRY US VITRO 3
GMK US GRUMA 4
IBA US BACHOCO 12
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Operative Factors
• Security lending is available• Short selling is allowed to/through the Market Makers and/or Mexder• Central counterparty “Indeval” clears, deposits and custodies all securities.• Securities settlement in 72 hours• Omnibus account allows non-disclosure of customer name• Foreign investors settle stocks through Euroclear, Clearstream or DTC vs Indeval in Mexico.• Foreigners and local customers must trade in local market through Mexican Brokerage
Houses.• Fully electronic exchange• Electronic access should be negotiated with a Mexican Brokerage House• Specific rules govern electronic access to the Exchange• CNBV (Mexican banking and securities regulatory and supervision authority) performs
extensive audits to verify compliance with these rules• Market makers exist for the less liquid stocks
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Mexder: IPC
• Futures and Options for IPC and some individual stocks and Traccs
• IPC non action letter was issued by the CFTC
• The IPC futures and Options are the most active
IPC
Futures
IPC
Options
Ticker Symbol IPC IP
Quotation/Style IPC points European
Size IPC*10 IPC x $10 MXN
Tick 5 points 1 point
Maturity Months Quarterly, up to 1 year Quarterly, up to 1 year
Trading Hours 8:30 – 15:00 hrs. EST 8:30 – 15:00 hrs. EST
Bloomberg (MMDD) ISA (INDEX) CT ISA (INDEX) OMON
R.30 – ReutersMXN/FUTEX1 0#IPC: 0#IPC:XD
5. MexDer
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Mexder
MexDer, The Mexican Derivatives Exchange was launched in December 1998. It is fully electronic, and provides listings for financial futures and options on Mexican securities and indices.In recent years, Mexder had the following important achievements:
• Market Makers.• IPC contracts No actions letter.• Fix Connectivity• Remote Trading Membership• No Withholding tax• Order Routing Agreement with CME
Group.• Non customer disclosure Omnibus
accounts.• IRS Full Delivery Futures Available
(Dodd-Frank Regulation).• Regulation Segregation between
House trading and Customer trading (30.7)
• Give ups.
MEXDER
Vol
um
e O
per
ado
/ V
olu
me
Trad
ed
Iner
ésA
bie
rto
/ O
pen
In
tere
st
Amounts in millions of contracts
Blue bars = volume Green line: open interest
Source: Graph from Mexder webpage.
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Clearing House
• Asigna is the counterparty for all transactions performed onthe market. It is evaluated and rated each year by threeleading international rating agencies.
• Asigna is the best counterparty in Mexico.
Local Rating Global Rating
Fitch Rating AAA (mex)
Standard & Poor’s mxAAA/mxA-1+ local currency BBB/A-3 foreign currency BBB/A-2 local currency
Moody’s AAA.MX A1
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Futures Contracts Activity (Excluding TIIE 28 Futures Contracts)
UDI / Inflation Index0.00%
Dólar US / US Dollar27.48%
Acciones / Individual Equities0.44%
CETE 9111.97%
SW10 (entregable) / 10-yr CCS
0.21%
BONO M32.68%
BONO M50.20%
BONO M108.95%
SW10 / 10-year IRS0.07%
Euro0.18%
IPC / IPC Equity6.51%
SW02 (entregable) / 2 yr CCS0.12%
BONO M2012.06%
Dólar US / United States Dollar
29.12%
Futuros/ Futures I.A. O.I.*SW10 / 10-yr IRS 956
SW10 (entregable) 10-Yr CCS 2,823
SW02 (entregable) 2-Yr CSS 1,500
CETE 91 158,000
BONO M3 22,100
BONO M5 2,700
BONO M10 118,157
BONO M20 159,122
BONO M30 14,300
UDI / Inflation Index 0
Dólar US / United States Dollar 384,119
Euro 2,428
IPC / IPC Equity Index 85,854
Acciones / Individual Equities 5,885
Source: Scotiabank with Mexder data
USD/MXN Mexder Futures Contract Activity
10 YR Bond Mexder Futures Contract Activity
Source: Scotiabank with Mexder data
6. Scotiabank
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Why Scotiabank for MexDer?Global Banking and Markets, the corporate and investment banking, and capital markets, businesses of the Scotiabank Group, is a full service clearing and execution provider in Mexico for all Futures and Options products listed on the Mexican Derivatives Exchange (MexDer).
As one of the most technologically advanced clearing members in Mexico, Scotia provides its clients with access to a wide range of services including Direct Electronic Access to the Mexican derivatives market through our broker, Scotia Derivados, and STP solution.
Some Clearing Services:
• A committed team of professionals focused on customized solutions for our clients. • Excellent execution and B/O systems. • On-line information and end-of the day reports via internet. • Opening an account takes a short time. • Competitive Commissions. • Effective, fast and safe client acceptance methodology. • Compliance and Anti Money Laundering Culture• Local Flavor and Research Reports.
WE WILL BE GLAD TO ATTEND TO YOUR NEEDS AS YOUR CLEARING MEMBER IN MEXDER.
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Scotiabank: Products, Services and Credit RatingsBANK
• Personal, Commerical and Corporate Banking• Wealth and Cash Management Services
INVESTMENT BANK (GBM)• Equities• Custody Services• Technical and Fundamental Research• Corporate Finance (Active in IPO Deals)• Money Market• Capital Markets• OTC Derivatives• Equity Derivatives• Securities Lending / Borrowing
SCOTIABANK Long Term CREDIT RATING:The Bank of Nova Scotia (Scotiabank) is AA-Scotiabank Inverlat Mexico MA AAA
SCOTIABANK Short Term CREDIT RATING:The Bank of Nova Scotia (Scotiabank) is A-1+Scotiabank Inverlat Mexico A-3
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Scotiabank GBM Emerging Markets Contacts
Joe KoganHead of Emerging Markets Strategy
(212) 225-6541
Drew MillerTrader, Local Rates
(212) 225-6515
Percy MoreiraHead of Emerging Markets Sales
(212) 225-6514
Fredrik NilssonHead of Emerging Markets Trading
(212) 225-6528
Guillermo Camou(52 55) 9179 5132
Lorena Pichardo(52 55) 9179 5133
Angélica Aguilar(52 55) 9179 5134
New York Emerging Markets
Scotiabank Inverlat Mexico
Derivatives Sales /Mexder
Carlos A. KretschmerHead of Capital Markets
(52 55) 9179 5130
Araceli EspinosaFixed Income Strategist
(52 55) 9179 5237
Jorge González-RomeroHead of Fixed Income Sales
(52 55) 9179 5109
Carlos Alberto HernándezDirector, Trading Fixed Income & Rates
(52 55) 9179 5125
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Disclaimers
Disclaimer About Taxes
The information contained in this publication is not intended to constitute legal or tax advice. You should consult with a qualified tax advisor before making any investment decision. Tax laws and authorities are subject to change, either prospectively or retroactively, and any subsequent change could have a material impact on your situation. All Scotiabank products and services are subject to the terms of applicable agreements and local regulations.
Disclaimer About Fixed Income Strategy
The fixed income strategy reports contained herein have been prepared for Institutional Investors by Fixed Income Strategists of Scotia Capital (USA) Inc. (“SCUSA”) and may include contributions by strategists who are employees of affiliates of SCUSA. Fixed Income Strategists are employees of SCUSA’s Fixed Income Credit Sales & Trading Desk and support the trading desk through the preparation of market commentary, including specific trading ideas, and other materials, both written and verbal, which may or may not be made publicly available, and which may or may not be made publicly available at the same time it is made available to the Fixed Income Credit Sales & Trading Desk. Fixed Income Strategists are not research analysts, and this report was not reviewed by the Research Departments of SCUSA. Fixed Income Strategist publications are not research reports and the views expressed by Fixed Income Strategists in this and other reports may differ from the views expressed by other departments, including the Research Department, of SCUSA. The securities laws and regulations and the policies of SCUSA that are applicable to Research Analysts may not be applicable to Fixed Income Strategists.
These reports are provided to you for informational purposes only. Prices shown in this publication are indicative and SCUSA is not offering to buy or sell, or soliciting offers to buy or sell any financial instrument. SCUSA may engage in transactions in a manner inconsistent with the views discussed herein. SCUSA may have positions, or be in the process of acquiring or disposing of positions, referred to in this publication. Other than the disclosures related to SCUSA, the information contained in this publication has been obtained from sources that SCUSA believes to be reliable, however we do not represent or warrant that such information is accurate and complete. The views expressed herein are the views of the Fixed Income Strategists of SCUSA and are subject to change, and SCUSA has no obligation to update its opinions or information in this publication.
SCUSA and any of its officers, directors and employees, including any persons involved in the preparation or issuance of this document, may from time to time act as managers, comanagers or underwriters of a public offering or act as principals or agents, deal in, own or act as market makers or advisors, brokers or commercial and/or investment bankers in relation to the securities or related derivatives which are the subject of this publication. Neither SCUSA nor any of its officers, directors, partners, employees or affiliates accepts any liability for any direct or consequential loss arising from this publication or its contents. The securities discussed in this publication may not be suitable for all investors. SCUSA recommends that investors independently evaluate each issuer and security discussed in this publication, and consult with any advisors they deem necessary prior to making any investment.
Additional Disclosures
United States: This report is distributed by Scotia Capital (USA) Inc., a subsidiary of Scotia Capital Inc., and a registered U.S. broker-dealer. All transactions by a U.S. investor of securities mentioned in this report must be effected through Scotia Capital (USA) Inc.
Canada: This report is distributed by Scotia Capital Inc., a subsidiary of The Bank of Nova Scotia. DWM Securities Inc. is a subsidiary of The Bank of Nova Scotia and an affiliate of Scotia Capital Inc. Scotia Capital Inc. and DWM Securities Inc. are members of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. DWM Securities Inc. does not provide investment banking services.
Mexico: This report is distributed by Scotia Inverlat Casa de Bolsa S.A. de C.V., a subsidiary of the Bank of Nova Scotia. Services described are available in jurisdictions where permitted by law. Additional or special requirements or restrictions to some products offered may be applicable in your country of residence.
TM Trademarks of The Bank of Nova Scotia. Used under license, where applicable. Scotiabank, together with “Global Banking and Markets”, is a marketing name for the global corporate and investment banking and capital markets businesses of The Bank of Nova Scotia and certain of its affiliates in the countries where they operate. Not all products and services are offered in all jurisdictions. Services described are available only in jurisdictions where permitted by law.